Delivery Hero Board Supports Uber’s $15 Billion Acquisition Proposal

The board of Delivery Hero has approved Uber’s $15 billion acquisition proposal and has recommended that shareholders endorse the agreement, which would establish one of the largest on-demand food delivery services globally.

After careful evaluation, the supervisory and management boards of Delivery Hero concluded that the proposal serves the best interests of the company, its shareholders, employees, and other stakeholders. They also assessed that the offered price was “fair and adequate” and expressed that the deal possesses the “potential to accelerate product innovation.”

If the acquisition receives approval, it would effectively double Uber’s presence on the global market, positioning its delivery service as one of the largest in the world, apart from China. This could also enhance Uber’s competitive edge against companies like DoorDash and Just Eat Takeaway.

Uber, which already holds the largest share in Delivery Hero, has stipulated a minimum acceptance threshold of 50% plus one share of Delivery Hero’s total outstanding share capital.

In addition, Prosus, another significant shareholder, has agreed to sell its 17% interest in Delivery Hero, as reported in the announcement. Previously, Delivery Hero decided to divest its operations in 14 markets where Uber Eats is already present, selling them to the New York-based investment firm SSW Partners for $1.6 billion.

This merger represents the latest trend of consolidation within the on-demand delivery sector. Over the past 18 months, Uber has also agreed to acquire Turkey’s Getir for $335 million, Grab announced its intention to purchase Delivery Hero’s Foodpanda in Taiwan for $600 million in cash, and DoorDash revealed plans to acquire the UK’s Deliveroo for $3.87 billion.